Hong Kong Dollar in Strong Half of Trading Band on Rate Hikes
- Currency rose against US dollar as HKMA followed Fed move
- City’s top lender HSBC says will raise own lending rate too
The HKMA increased the rate to 5.75% from 5.5%, according to a statement from the city’s de-facto central bank.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Hong Kong’s currency has risen above the mid-point of its trading band against the dollar for the first time this year, as the city’s de facto central bank followed the Federal Reserve with a fresh interest rate hike.
The Hong Kong dollar decisively crossed 7.80 per dollar, the center of the pair’s allowed trading band, after the Fed raised rates to a 22-year high and left the door for further policy tightening. Within hours, the Hong Kong Monetary Authority also increased the local funding benchmark to 5.75% from 5.5%.